Regional consumer trend updates: South America
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Contents Proactive living: Consumers in South America are taking active steps to improve their diets and lifestyles . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Safe and secure: Consumers in South America are becoming more risk averse and are adopting recessionary shopping habits . . . . . . . . . . . . . . . . 6 Rediscovering health: Health goals are shifting towards disease management in South America as more emphasis is placed on boosting the immune system . . . . . . . . . . 8 The power of plants: Consumers in South America are switching to plant-based alternatives that are deemed healthier and more sustainable . . . . . . . . . . . . . . . . . 10 Better for you, not best for you: Consumers in South America want products that they deem to be guilt-free and conveniently nutritious . . . . . . . . . . . . . . . . . .
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Natural blueprint: Consumers want reassurance that ingredients in products are real and authentic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Taste first, think second: Consumers in South America want products that challenge their sensory perceptions . . . . . . . . . . . . . . . . . . . . . . .
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The earth is clear: Consumers in South America want brands to demonstrate their ethical and environmental credentials . . . . . . . . . . . . . . . . . . . . 18 Menu for me: Consumers want customised products to help deal with their specific health goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Eating out, dining in: Innovation is needed within the foodservice sector to target discerning consumers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Key takeaways . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
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This report examines FMCG Gurus Top Ten Trends for 2021 and how they are influencing consumer attitudes and behaviour in South America
insights.figlobal.com Regional consumer trend updates: South America | 3
Proactive living: Consumers in South America are taking active steps to improve their diets and lifestyles Over the last couple of decades, lifestyles have changed considerably in South America, especially in urban areas. The middle class has grown significantly, which has resulted in traits such as changing dietary habits and greater levels of inactivity. At the other end of the spectrum, there are consumers who have not managed to take advantage of economic growth in the region, meaning that many still struggle with dayto-day living costs. Irrespective of the type of consumer, there has been increased levels of consciousness towards health in recent years. This has been accelerated over the last twelve months by the COVID-19 crisis, especially as South America has struggled to keep the virus under control. As consumers re-evaluate their health in a pandemic environment, they are recognising that diets and lifestyles are not as healthy as they should be, which increases the risk of immediate and long-term health problems. Traits such as excessive intake of processed food, increased snacking rates, and more indulgent consumption occasions, combined with less attention to micronutrients, are resulting in increased rates of lifestyle-related health problems such as obesity. In addition, the prevalence of mental wellbeing-related problems is also on the rise in the region, with consumers suffering from poor sleep health, stress, and an inability to relax for a variety of reasons. At the same time, consumers are recognising that this also has a significant impact on their health.
Do you plan to make improvements to any of the following
78% 68%
47%
66%
64%
53%
48%
42%
41%
33% 20%
9%
My general health and wellness
My cognitive/ mental health
My digestive health
Source: Personalized nutrition survey, Q3 2020 (3,000 respondents)
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My energy levels
My eye health
My heart health
Consumers in South America have therefore been making conscious efforts to improve all areas of their physical and cognitive health over the last 12 months, especially as they recognise that all aspects of health are interlinked. However, despite their best intentions, consumers can often struggle to stick to dietary plans. Therefore, obesity rates in the region continue to rise despite more people than ever saying that they are committed to better dietary plans. Adopting a healthier lifestyle is often associated with sacrifice, something that is deemed problematic in the eyes of the consumer. Brands in South America must respond to this by launching better-for-you options that are deemed to be hassle-free from a taste, affordability, and convenience perspective, so that products can easily be incorporated into daily diets.
areas of your health over the next twelve months? (2020) Argentina
Brazil
79% 61% 50% 41% 34% 26% 17%
My immunity
My joint/ bone health
30%
34%
36%
31%
14%
My muscle health
My skin/ nail/hair health
My sleep habits/ health
My weight/ waistline
Regional consumer trend updates: South America | 5
Safe and secure: Consumers in South America are becoming more risk averse and are adopting recessionary shopping habits The impact of COVID-19 has been long-lasting and wide ranging across South America over the last twelve months. Moreover, as they struggle to contain the virus, the implications will continue to linger in the region, and will manifest in consumer attitudes and behaviours in two ways. Firstly, they will become more risk averse as they look to minimise their vulnerability to health problems and secondly, they will adopt recessionary shopping habits in a different economic climate. Over the last twelve months, consumers have questioned aspects of their life that they previously took for granted. One area of focus has been on minimising their exposure to germs, viruses, and bacteria, as they look to maintain health. This has resulted in some consumers becoming more conscious about busy places and mass gatherings, and some are re-evaluating the channels and type of outlets they choose to shop in. Risk aversion is something that is also influencing food and drink choice, as consumers place greater emphasis on product safety and want more information about the products that they purchase. This is the result of stories about the possible risk of the virus being transported via food imports. Consumers want reassurance about the safety and handling of products along the supply chain, from the sourcing of ingredients to the formulation, distribution, and storage of products. This is driving demand for localised supply chains and has also resulted in consumers re-evaluating their attitudes to packaging. Ultimately, many consumers will make the link between safety and value for money. The state of the economy is something that is also a major worry for consumers in South America. It is important not to overestimate the size of the middle class or spending power in this region. Indeed, many consumers still live only just above the poverty line and even before any significant changes to the economy were struggling with everyday living costs. The state of the economy, as a result of the pandemic, will intensify these feelings of financial woe and consumers will respond by adopting recessionary spending habits. This will result in consumers shopping around more to get the best deal possible, cutting back on nonessentials and re-evaluating what constitutes good value for money, something which will ultimately impact on brand loyalty. However, it is worth noting that this doesn’t mean that consumers will look for the cheapest priced product all the time. Instead, they will adopt a hi/low approach to shopping, looking to save money on certain products in order to spend more elsewhere. If brands are to encourage consumers to trade-up, it is crucial that they are able to demonstrate safety traits and successfully communicate that maximum care and attention has gone into the formulation of products, and that they have the best interests of the consumer at heart.
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Proportion of consumers in Brazil who say that they would like more information over the safe handling and manufacturing of products as a result of COVID-19
90% 84% 81%
80%
April 2020
May 2020
July 2020
February 2021
Source: COVID-19 survey series, 2020-2021 (2,000 respondents)
Proportion of consumers in Brazil who say that they are looking to save money on their shopping bills as a result of COVID-19
59% 52% 38% 29%
April 2020
May 2020
July 2020
February 2021
Source: COVID-19 survey series, 2020-2021 (2,000 respondents)
Regional consumer trend updates: South America | 7
Rediscovering health: Health goals are shifting towards disease management in South America as more emphasis is placed on boosting the immune system As already stated, consumers in South America have become more conscious about their health and wellness in the wake of COVID-19, as they have questioned their vulnerability to disease and illness. It must be noted that even before the pandemic, consumers were not overly conscious about their health. Indeed, consumers recognised that traits such as poor dietary habits, busy lives, reduced levels of physical activity and more time spent indoors on technology is all having an impact on the immune system. However, the virus is something that has intensified this as concerns are not just restricted to the older generation or those with underlying health problems, but instead, impacts society overall. Consumers are therefore taking a more proactive approach to health maintenance than ever before, and placing emphasis on boosting the immune system, especially as this is seen by many as the centre point to good overall health. Moreover, health goals will shift from being aspirational and feeling/looking good to instead, focusing on disease maintenance. Consumers will be taking a variety of steps to help boost their immune system, with a specific focus on improving their diets. Consumers will look to do this in two ways. Firstly, they will adopt a back-to-basics approach to nutrition, looking to increase their intake of food and drink that they deem natural and nutritious, and free-from dietary evils. Secondly, they will seek out functional food and drink products that they associate with offering a health boost beyond basic nutrition. Ingredient-led claims are something that will become influential on purchasing habits, with consumers seeking out recognised ingredients that they associate with a variety of benefits. As consumers research more about ingredients in general, they will also be open to trying new and innovative ingredients on the market. At the same time, consumers will have favourable perceptions of functional products that are seen to address a variety of health problems. When launching functional products in South America, it is crucial that claims on products are deemed to be credible. Consumers are becoming sceptical about health and wellness brands, believing that they often make misleading claims in order to charge a premium price. As such, it is crucial that any health claims are not deemed misleading.
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Proportion of consumers who say that they are satisfied with their immune system (2019)
Proportion of consumers who say that they are easily susceptible to disease and illness (2019)
54%
52%
33% 45%
Argentina
Brazil
Argentina
Source: Immunity survey, Q3 2019 (2,000 respondents)
Brazil
Source: Immunity survey, Q3 2019 (2,000 respondents)
Proportion of consumers in Brazil who say that they have become more conscious about their immune health as a result of COVID-19 (2019)
75%
77%
May 2020
July 2020
75%
61%
April 2020
February 2021
Source: COVID-19 survey series, 2020-2021 (2,000 respondents)
Regional consumer trend updates: South America | 9
The power of plants: Consumers in South America are switching to plant-based alternatives that are deemed healthier and more sustainable In recent years, a growing proportion of consumers in South America have looked to reduce or eliminate meat and/or dairy from their diets, which has primarily been done for health and sustainability purposes. Consumers are conscious about the environmental implications of cattle farming and issues such as greenhouse gasses, especially as they become more concerned about the state of the planet in general. Meanwhile, excessive intake of meat (especially red meat) is associated with health problems such as hypertension, whilst excessive dairy is associated with high intake of ‘bad’ ingredients such as fat. In the wake of COVID-19, consumers have also become more conscious about animal welfare issues, especially when it comes to produce imported from certain countries around the world. The desire to reduce meat and dairy intake has resulted in the growing popularity of plant-based meat and dairy products in the region. Although the market in South America is not as big as markets in North America and Europe, more and more consumers who identify themselves as vegan, vegetarian, or flexitarian are seeking out such products because they are deemed to be environmentally-friendly, healthier, and natural. Like any health and wellness trend, the pandemic has intensified demand for such products. Despite their best intentions, consumers can often struggle to stick to dietary plans. Better-for-you products can often be associated with compromise and sacrifice, and consumers are unwilling to compromise on sensory appeal. Some consumers in South America can also be conscious about the taste and texture of plant-based products, which will make them reluctant to purchase these, irrespective of their attitudes towards health and the environment. If the plant-based market is to continue to become more mainstream, it is crucial that products are seen to replicate the experience of eating/drinking animal produce from a taste and texture perspective. When launching plant-based products, it is also important that brands are not seen to be making misleading claims in relation to how healthy or natural products are. As already mentioned, consumers are becoming more sceptical to the practices and policies of brands in general, and are scrutinising claims made by brands with greater intensity. If brands are seen to be making misleading claims, it is something that could potentially result in an industry backlash.
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Proportion of consumers who follow a diet around meat avoidance or elimination (2019/2020)
47% 38% 24%
Argentina
Brazil
Chile
Source: Meat and plant-based protein survey, Q3 2019/Q2 2020 (4,000 respondents)
Top five reasons for following a diet around meat avoidance (2019/2020) South America Those who follow such a diet I associate eating less meat with being healthier
63%
Environmental concerns
52%
Price of meat is too high
49%
Concerns over animal welfare I believe eating meat leads to weight gain
46% 35%
Source: Meat and plant-based protein survey, Q3 2019/Q2 2020 (4,000 respondents)
Regional consumer trend updates: South America | 11
Better for you, not best for you: Consumers in South America want products that they deem to be guilt-free and conveniently nutritious Although much attention is given to the issue of health and wellness, it is important not to overestimate the impact that it has on eating and drinking habits across the region of South America. The reality is that the healthiness of diets is something that will vary throughout the day, based on the mindset of the consumer. Consumers tend to be more health-orientated earlier in the day and later in the evening. However, many admit that their diets are not overly healthy during the middle part of the day. This is because need states such as the desire for escapism and reward, a cure for boredom, and a need for energy have a greater influence on food and drink choice, often at the expense of nutritional value. In addition, changing dietary habits in the region over the last couple of decades means that more consumers than ever before are prone to enjoying moments of indulgence where little-to-no attention is paid to nutritional intake.
Proportion of consumers who describe their diet as
44%
28% 24%
41%
19% 12% Early morning
Source: Active nutrition survey, Q3 2019 (3,000 respondents)
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Mid-morning
Midday
Over the last twelve months, consumers in South America have also demonstrated two somewhat contradictory need states. On the one hand, consumers have looked to improve their diets. This is because they want to improve their overall health and have also become more conscious about weight gain due to increased levels of comforting eating in 2020, resulting from the uncertainty brought about by the pandemic. However, on the other hand, consumers are prone to turn to comfort food for moments of escapism and to help alleviate feelings of stress. When it comes to such occasions, less attention tends to be given to health. Given that the implications of the virus will continue to linger throughout society for some time to come, the reality is that consumers will continue to demonstrate these two polarising attitudes and behaviours for some time to come. Ultimately, this will drive demand for products that offer taste and escapism at the same time, enabling consumers to turn to products for indulgence and energy purposes, without such occasions creating feelings of guilt or conflicting with wider health goals. This will drive demand for better-for-you options, especially in impulse categories, over the next twelve months, such as sports nutrition products and products that carry a variety of free-from claims.
unhealthy at the following times of day (2019) Argentina
Brazil
45%
23%
24%
31% 21% 15%
Mid-afternoon
Early evening
Late evening
Regional consumer trend updates: South America | 13
Natural blueprint: Consumers want reassurance that ingredients in products are real and authentic Natural remains a priority for consumers in South America when choosing food and drink and is a product attribute that is prioritised when evaluating a product, alongside perceptions of taste, price, and sugar content. Consumers are being more attentive to the ingredients used in products because they want real and authentic ingredients that they deem natural and nutritious, and want to avoid any ingredients which they associate with being detrimental to their health and the wider environment. Attentiveness to product formulation is also driven by sceptical consumers believing that brands can often make nutritional labelling deliberately complex in order to disguise certain ingredients used in product formulation. As such, there is growing demand for streamlined ingredient lists and simplified nutritional labelling. In the wake of COVID-19, demand for natural products has grown as consumers have become more health conscious and risk averse. Natural products are associated with a variety of benefits such as products being tastier, healthier, safer, and better quality. Moreover, natural ingredients also tend to be associated with local production. This means that more than ever, consumers will be attentive to natural claims when purchasing food and drink. They will also attach importance to clean and green packaging as they express concern that chemicals used in product packaging may pose a risk of contaminating the product inside. Although consumers have favourable perceptions of natural claims because of the related benefits, it is also important to remember that consumers are more sceptical than ever about the practices and policies of brands. The word natural, as well as related claims such as sustainable and local, are subjective in nature. Whilst consumers may associate natural formulation with certain traits, a product may be labelled as natural for a different reason which will create feelings of distrust within the industry overall. As such, it will be more important than ever before that brands look to validate and authenticate natural claims made.
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Proportion of consumers who say it is important that food and drink is 100% natural (2019/2020)
75%
Argentina
71%
61%
Brazil
Chile
71%
Colombia
Source: Clean label and naturalness survey, Q1 2019/Q1 2020 (5,000 respondents)
Why is it important that food and drink is 100% natural? Consumers who say it is important food and drink is 100% natural Natural food and drink is… South America
Tasty
57%
Better quality
52%
Healthy
48%
Better for the environment
42%
Source: Clean label and naturalness survey, Q1 2019/Q1 2020 ( 5,000 respondents)
Regional consumer trend updates: South America | 15
Taste first, think second: Consumers in South America want products that challenge their sensory perceptions Over the last couple of decades, cuisine habits within South America have changed considerably. The middle class has grown in the region and with that, so has levels of disposable income. In addition, consumers have been exposed to more choice than ever before from a food and drink perspective. This means that traditional dietary habits across the region are changing, with consumers being more open than ever to trying new food and drink products from around the world. It also means that consumers want a genuine experience when choosing products, even when it comes to everyday consumption occasions, and they are becoming more difficult to impress when it comes to new product development. All of this is driving demand for new and unusual flavours in product categories. Consumers tend to seek out new and novel flavours as a form of self-expression and are looking to showcase their sophisticated experimental food and drink choices to their social circle. Consumers find a variety of different flavours appealing, for instance, consumers like flavour hybrids, flavours not synonymous with a category, hot and spicy flavours, and flavours from around the world. In some instances, flavours from a foreign country are not enough and consumers want flavours from specific regions within that country. Regardless of the type of flavour enjoyed, the research shows that there is scope to push the boundaries of innovation within the food and drink market and challenge sensory perceptions. When seeking out experimental food and drink, it must also be remembered that consumers want products that they deem to be premium in order to reflect their good taste and sophistication. This means that experimental flavours must be seen as more than a novelty and something that enhances the sensory experience of products. Story-based marketing around the sourcing of ingredients as well as why flavours have been used, can help authenticate the premium credentials of such products. If flavours are seen as nothing more than a novelty, however, it is something that potentially runs the risk of de-valuing a brand.
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Proportion of consumers who say that they like food and drink products with new and unusual/exotic flavours (2020)
88% 72%
Argentina
Brazil
Source: Flavours, Textures & Colors survey, Q3 2020 (3,000 respondents)
Why do you like new and unusual/exotic flavours? (2020) Consumers who say that they like new and unusual flavours Argentina
Brazil
I can often find traditional flavours bland and boring
20%
26%
I deem myself adventurous and like to try new flavours
66%
82%
I find experimental and exotic flavours make a product more exclusive
40%
65%
I like products that stand out from others
33%
52%
I like to be experimental when cooking
46%
59%
I like to pair experimental flavours with alcoholic beverages
13%
17%
I like to post about new and exotic flavours on social media
10%
20%
I like to try new flavours from around the world
70%
70%
I like to try new flavours from specific regions from countries around the world
62%
63%
I like trying flavours that I haven't tried before
50%
62%
Other
7%
6%
Source: Flavours, Textures & Colors survey, Q3 2020 (3,000 respondents)
Regional consumer trend updates: South America | 17
The earth is clear: Consumers in South America want brands to demonstrate their ethical and environmental credentials Concern over the state of the environment is high in South America, with levels of worry tending to be higher than in regions such as Europe. This is because consumers have had first-hand exposure to the consequences of globalisation on the planet – such as deforestation and pollution. As a result, many consumers are pessimistic over the environment believing that levels of damage done are irreversible, which will impact the quality of life for current and future generations. This is especially true, as many feel that the topics of health and sustainability are interlinked and impact on each other. Consumers have also re-evaluated their attitudes to the environment in the wake of COVID-19, questioning whether the state of the environment has contributed to the spread of the disease. As consumers become more concerned about the environment, they are adopting a collective approach to the issue and making changes to their diets and lifestyles in order to behave in a more sustainable manner. Consumers will want brands that they feel match their attitudes and outlook on life, especially as many associate big businesses and corporate greed as a main reason for damage done to the planet. Consumers are adapting their dietary habits in many ways to lead a more sustinable lifestyle. Whilst much attention has been given to the growth in popularity of plant-based food and drink in recent years, greater attempts are also being made to reduce food waste and seek out more local produce. Such behavioural traits are also motivated by the link with additional benefits, for instance, that these dietary choices are healthier and more cost-effective. This means that brands will need to demonstrate a cradle-to-grave approach to sustainability along the whole of the supply chain. It also means that they need to be more proactive than ever in terms of addressing sustainability issues and communicating pledges and commitments in a transparent manner. Whilst consumers say that they are becoming more sustainably minded, it is important not to overestimate how altruistic they are. Many consumers will not purchase a product just because it is environmentallyfriendly, especially if associated with a premium price or inferior taste. Instead, products need to be positioned as being win-win for the environment and the individual, such as sustainable products being healthier, better quality, or tastier.
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Proportion of consumers who say they are concerned about the state of the environment (2019/2020)
Proportion of consumers who say that damage done to the environment is irreversible (2019/2020)
65%
73% 54%
42%
Argentina
Brazil
Argentina
Source: Sustainability survey, Q3 2019/Q3 2020 (3,000 respondents)
Brazil
Source: Sustainability survey, Q3 2019/Q3 2020 (3,000 respondents)
Proportion of consumers in Brazil who say that they have been more attentive to sustainability claims as a result of COVID-19 61%
64%
50% 42%
April 2020
May 2020
July 2020
February 2021
Source: COVID-19 survey series, 2020-2021 (2,000 respondents)
Regional consumer trend updates: South America | 19
Menu for me: Consumers want customised products to help deal with their specific health goals As stressed throughout this report, consumers in South America are becoming more conscious about their health, and this is a trend that will intensify. For instance, society is ageing, which increases in more people being vulnerable to disease and illness. The impact of COVID-19 is something that continues to linger, meaning people will remain on a heightened alert over their health. Finally, consumers will continue to be conscious of their diets and lifestyles and the impact it has on their immediate and long-term health. As consumers seek out instant and effective solutions to their health concerns, they will increasingly question whether available products on the market are suited for their specific needs. This will drive an opportunity for personalised and customised health products. Across South America, a high proportion of consumers say that they have favourable perceptions of food and drink products that are customised to address their specific health needs. Such products tend to be associated with providing real-time and specific health information. Consumers find these products appealing because they are associated with helping facilitate healthy ageing, which is important as consumers take a proactive and long-term approach to health maintenance. This creates opportunities around concepts such as nutrition genetic testing, whereby consumers exchange DNA samples in return for a health assessment and personalised health products catered to their specific needs. Whilst such products appeal to consumers, there are a variety of factors that need to be taken into consideration. For instance, consumers will want reassurance about the safety of information provided to third parties, especially their DNA samples. It is also important that products and services are deemed affordable, that scientific evidence is provided to validate claims made, and that consumers are aware of the benefits and limitations of such products. Nevertheless, as concerns about health continue to grow in South America, there will be more scope than ever to target consumers with personalised and customised product offerings.
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Proportion of consumers who say they are interested in food and drink products that are customized to meet their nutritional needs (2020) 80% 64%
Argentina
Brazil
Source: Personalized nutrition survey, Q3 2020 (3,000 respondents)
Why are you interested in these products? (2020) Consumers interested in customized food and drink products Argentina
Brazil
To fully understand my DNA/genetic make up
5%
10%
To improve female health issues
19%
12%
To improve my cognitive/mental health
32%
58%
To improve my digestive health
46%
38%
To improve my energy levels
40%
56%
To improve my eye health
8%
8%
To improve my heart health
54%
43%
To improve my immunity
70%
66%
To improve my joint/bone health
46%
33%
To improve my muscle health
10%
29%
To improve my skin/nail/hair health
21%
29%
To improve my sleep habits/patterns
21%
17%
To maintain a good quality of life
88%
78%
To relieve my concern about getting an illness/disease
58%
86%
To stay healthy as I get older
85%
89%
To take a proactive approach to health maintenance
46%
49%
Source: Personalized nutrition survey, Q3 2020 (3,000 respondents)
Regional consumer trend updates: South America | 21
Eating out, dining in: Innovation is needed within the foodservice sector to target discerning consumers Over the last twelve months, the South American foodservice sector has been significantly impacted by the pandemic, which will continue to linger throughout 2021. Indeed, even when infection and mortality rates decline, some consumers will still be conscious about visiting public places. In addition, even those consumers who are happy to return to busy areas will want reassurance that foodservice outlets have COVID-19 safety practices implemented. As well as the ongoing risk of the virus, physical foodservice outlets now also face more threat from the growth of the direct-to-consumer foodservice channel and more premium offerings in retail channels, which allow consumers to enjoy high quality eating and drinking occasions in the comfort of their own home. If foodservice outlets are to entice consumers back into physical outlets when the region recovers from the virus, it will be important that they offer menu innovation and stand out appeal that helps capture consumer attitude, especially amongst those consumers who want brands that they feel reflect their good taste and sophistication. Foodservice outlets can do this through promoting experimental flavours and sustainability credentials along the whole of the supply chain. Experimental and limited-time offerings will appeal to adventurous consumers who want their sensory perceptions challenged. Meanwhile, foodservice outlets should go beyond extending the availability of plant-based products on the menu and instead, putting sustainability at the core of brand philosophy and practice.
How do you think foodservice outlets can
70% 52% 32% 15%
22%
Brand ambassadors
49% 37%
20%
Limited time menu offerings
Source: Foodservice survey, Q2 2020 (3,000 respondents)
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Promoting food and drink from part of the globe that I am unfamiliar with
Social media activity
28%
30%
Through good word of mouth about the outlet
In the long-term, differentiation will be more effective for brands in targeting image conscious consumers, especially in urban areas, over aggressive discounting strategies. After all, heavy promotional offerings on a regular basis encourages price sensitivity. In comparison, if foodservice outlets have genuine identity, create stand out appeal, and align with attitudes and outlook on life, it will increase willingness to trade-up.
help better capture your attention? (2020) Argentina
89%
Brazil
84% 71%
62% 38% 24%
29%
8%
Through promoting ethical and responsible causes
Through promoting live events/ artists
Through promoting plant-based products
Through taking an active stance on food waste
Regional consumer trend updates: South America | 23
Key takeaways • Help consumers improve dietary habits in a stress-free way: Consumers want to improve their diets but can often find it a struggle to stick to dietary plans in the long-term because of the association with sacrifice. To help counter this, brands need to launch better-for-you products deemed affordable, convenient, and tasty. •B e transparent to maximise perceptions of value: Consumers are becoming more risk averse and want to minimise risk of health problems, whilst also becoming more value-orientated at the same time. This means that brands need to demonstrate transparency and show that they have the best interests of the consumer at heart more than ever. • L aunch functional products that aid holistic health: Consumers want to take a long-term approach to health as they look to minimise vulnerability to disease and illness. This will drive demand for functional products that contain a variety of ingredients, with consumers wanting products that address a variety of health issues simultaneously. •E nable consumers to switch to plant-based alternatives: Consumers want to reduce their intake of meat and dairy and want to switch to plant-based alternatives for health and sustainability purposes. It is therefore crucial that plant-based products are seen to mimic the experience of eating and drinking animal produce from a taste and texture perspective. •O ffer guilt-free indulgence: Consumers want to continue to turn to food and drink for moments of escapism to deal with daily pressures, whilst at the same time wanting to improve their dietary habits. This will drive demand for natural products that carry a variety of free-from claims which are deemed guilt-free and conveniently nutritious. • Reassure consumers over ingredients: Consumers want ingredients that they deem to be real and authentic, natural and nutritious, and that do not cause any harm to them or the wider planet. Brands can respond to this through strategies such as streamlining ingredient lists and simplifying nutritional information. • Challenge sensory perceptions: Consumers deem themselves to be sophisticated and experimental and want unusual flavours that challenge their sensory perceptions. There is an opportunity to launch new and disruptive flavours within the food and drink market; however, such flavours should be seen as more than a novelty. • Put sustainability at the core of brand philosophy: Consumers are making changes to their diets and lifestyles in order to behave in a more sustainable manner and want brands that match their attitudes and outlook on life. Brands must take a proactive and holistic approach to addressing environmental issues. •D evelop customised health solutions: Consumers want nutritional products that are personalised to address their specific health goals. This creates an opportunity for innovations such as customised food and drink offerings and nutrition genetic testing. Credibility and affordability are paramount when launching such products. •C ombine experimentation with sustainability in the foodservice channel: Consumers will want outlets that they feel mirror their attitudes and outlook on life. The foodservice channel should respond to this by leveraging experimental flavours and sustainability practices to create stand out appeal.
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Surveys used in this report • Personalized nutrition survey, Q3 2020 (3,000 respondents) •C OVID-19 survey – April 2020 (2,000 respondents) •C OVID-19 survey – May 2020 (2,000 respondents) •C OVID-19 survey – July 2020 (2,000 respondents) •C OVID-19 survey – February 2021 (2,000 respondents) • I mmunity survey, Q3 2019 (2,000 respondents) •M eat and plant-based protein survey, Q3 2019/Q2 2020 (4,000 respondents) •A ctive nutrition survey, Q3 2019 (3,000 respondents) •C lean label and naturalness survey, Q1 2019/Q1 2020 (5,000 respondents) • F lavours, Textures & Colors survey, Q3 2020 (3,000 respondents) • S ustainability survey, Q3 2019/Q3 2020 (3,000 respondents) • F oodservice survey, Q2 2020 (3,000 respondents)
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